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Creating your own Trading Strategy!!SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Creating your own Trading Strategy!! Below is a quick run down of things to think about when creating your own trading strategy 1. How much time during the day do you have to devote to trading? .................................................................................. 2. How much money do you need to live on each year and how much of that must come out of trading profits? ...................................................................................................................................... 3. How many distractions can you expect during the day/night? ..................................................................... 4. Specify the markets and times of the day you will trade? ......................................................................... 5. Do I want to trade multiple systems? ............................................... 6. Will you short sell? Or go long? ........................................ 7.Where will you place your Entry/Stop Loss and Target Line? ........................................................................... Follow your Trading plan, Remain disciplined and keep learning !! Please Follow, Like,Comment & Follow Thank you for your support :) This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
FX_IDC:USDWTIEducation
by SMPTrader
Key Trading StrategiesSELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Key Trading Strategies There are four key trading strategies, which are Day, Scalper, Swing and Position Trading. a. Day The day trading is the method in which the buying and selling of securities are done on the same day. The professional traders who are commonly known as market makers generally do it. b. Scalper It is one of the quickest strategies, which is employed by the active traders. In this, the currency is purchased at the bid price and sell at the asking price to receive the difference between them. Scalper holds the FOREX for short period and therefore, they search for the markets where the liquidity is high. c. Swing The swing traders steps in when the trend in the FOREX ends. These traders buy and sell at the price, which is set by the volatility. The trades, which is done in the swing, is not held for more than a day. The rules in the swing trade are set by the technical or fundamental analysis. They are generally known as algorithms. It is necessary for the algorithms to predict the peak or down price of the trade so that it can identify the direction in which the market moves. d.Position Trading Position trading is considered as the strategy, which is referred to the buy and hold of the currency. It is not considered as the active trading. However, when some advanced trader does it, it can be referred as the active trading. It determines the current trends in the market by using various charts which fall between anywhere from daily to monthly. It is a long trade, which can last for several months also. For determining the trend of the security, the traders look into the successive upper highs and lower highs for the effective judgement. However, they do not forecast any price levels. Follow your Trading plan, Remain disciplined and keep learning !! Please Follow, Like,Comment & Follow Thank you for your support :) This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Education
by SMPTrader
stochastic rsi + 100 ema strategyi have tried this strategy and i find it profitable with this rules: stochastic rsi: K = 5 D = 10 rsi length = 14 stochastic length = 14 Ema: 100 Rules: if the prise moves above the ema, then you are looking for a long positon. when the stochastic rsi is moving above the 80, look for a pull back. when the pullback comes you want the rsi to go below the 20 zone withoute eny crosses on the way down from the 80 zone. When the rsi then makes a cross below the 20 open a buy position. the risk reward shoud be 1:1 on first target and 2:1 on second. set the previos structure high as first targets. Dont trade if the prise closes below the 100 ema before the cross, this would make it unvalid. One more is that the structure high before the pullback must be higher than the previos stricture high. The same rules apply when the prise moves below the ema, just opposite. This is my first article and i hope you found it educatinal.
Education
by lusaa001
Creating your own Trading StrategySELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Creating your own Trading Strategy "In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets".Whats your Trading Plan/Strategy? Some of the questions you need to ask yourself when creating your own strategy are as follows; How much time during the day/night do you have to devote to trading? How much money do you need to live on each year and how much of that must come out of trading profits? How many distractions can you expect during the day/night? Specify the markets and times of the day you will trade Do i want to trade multiple systems? Will you short sell? or go long? Where will you place your entry/stop loss and target line? How will i monitor my trading results/outcomes? Will i use software or just a simple excel document? Will i need a mentor or will I be self taught? How do I handle losing money? Can i handle being in a trade for more then an Minute/Hour, Day, Week etc? Will i use a phone, tablet or desktop computer to place, check or cancel my trade? How will i improve my trading performance? How did you go about creating your strategy? What steps did you take or follow?
Education
by SMPTrader
Trading BCH with the ZenTrend follower & Gameplan for hardforkThis is how we're trading BCASH with our indicator. Now there is of course news of the hard fork and all that, but this is how we have traded it purely technically based on our indicator. Check the post linked below on how to get access to the trial period and you can try it out for yourself! We have taken the trades based purely on the breakout indicator and the trailing stop that the indicator plots. We start at (1) with a long setup, which does not get triggered. The setup switches short (2) and we get entered in the trade. The market moves and we get stopped out at the red crosses the indicator plots. (4) We made a small 1.4% on that trade, nothing to get to exited about, but no loser either. We get another short setup which remains untriggered (5), followed by an untriggered long setup (6). At (7) we get another short setup which does get triggered. We get stopped out at (8) again with a basically break-even trade of .4% profit. A new short setup immediately follows and we get triggered short at (8). We get stopped out at (9) with a 2.8% profit. (10) Gives us another short setup that does not get triggered, followed by a long setup which triggers a trade at (11). We move our stop op as the indicator tells us to do (12). We then start getting extreme overload signals (the dots above the candles) (13), and move our stop to the bottom of the candles at signs of weakness. The other stop loss is moved up by the indicator too(14). We’re getting more overextension signals so we move our stop to the bottom of the candle at (15). Here we get out of 70% of our position, the remaining 30% has the stop at (14). If the market does move down off these overextension signals we will look for re-entry signals the indicator gives us to get back in! Now looking at the hardfork, we plan to get out just before the hard fork at signs of weakness in price, as we expect coin to collapse after that. You can count on about 99% of all BCH that has been bought in the last few days to be sold as soon as the hard fork is done.. If we are wrong it that case we can always re-enter our positions, in safety. To get access to the indicator and try it out, please go here: Like and subscribe if you enjoy our work! Stay calm, and happy trading! ZenTrader
BEducation
by DariusZen
Scalping with Reversal StrategiesReversal strategies suggest that markets tend to revert, i.e. a negative movement will be followed by a positive movement, and vice versa. To examine whether markets tend to be trend revert or trend succeed (i.e. a positive movement is followed by a positive movement and a negative movement also by a negative one), we need to check historical prices for evidence of such behaviour. Then, we need to examine whether this behaviour is more likely to occur compared to a random selection, such as a coin toss. To do this, we first need to understand the notion of probability. In general, probability is the possibility of an event occurring, expressed as a percentage of total possible events. For example, the probability of tossing a coin and getting heads is the possibility of that event, i.e. 1 out of the 2 possible outcomes (heads or tails). Thus, the overall probability is ½ or 50%. In a similar setting, the probability of getting the number 12 in the roulette is 1 out of a total of 36 outcomes, hence the probability is 1/36, i.e. about 3%. An interesting complication of probabilities is that if they are independent, i.e. if the previous outcome does not affect the current outcome, such as in coin tossing, roulette, and the lottery, then we can simply multiply the events to get total probability. For example, the probability of getting two consecutive heads is ½ multiplied by ½ which gives us a total probability of ¼ or 25%. This is useful in understanding how often price movements can be viewed as random or as following a statistical pattern. To elaborate on this, I have employed EURUSD data to examine whether there is evidence of a reversal activity in the pair. As the table below shows, there is evidence of such behaviour only in the 1-minute chart, where reversals are observed in the data. Otherwise, the percentage of trend reversals appears to be very close to 50%, i.e. being random. EURUSD 1-minute 30-minute 60-minute 4-hour 1-day Probability 42.1% 51.0% 50.6% 50.2% 51.5% Random No Yes Yes Yes Yes The same holds for the USA500 index as the table below shows, albeit it suggests that reversal strategies can be non-random at the 30-minute interval as well. However, despite their statistical appeal, these strategies are not as successful as expected. As the graph in the start of this post shows, the strategy can be successful during some periods while it can be terribly disastrous in others. For example, while it worked for the 1-minute chart in the EURUSD, at times very successful, reaching gains in excess of 3%, it dropped to just above 1% in the end. EURUSD 1-minute 30-minute 60-minute 4-hour 1-day Probability 39.6% 44.9% 48.0% 49.0% 51.1% Random No No Yes Yes Yes The USA500 1-minute and 30-minute charts record a similar response: the 30-minute chart, when the probability is closer to 50%, records much worse performance, while the 1-minute chart provides a good start but ends in disappointment. So what does this tell us? Like all trading strategies, reversal strategies can be successful in some instances and unsuccessful in others. The analytics above suggest that reversal strategies are unsuccessful in longer horizons and hence there appears to be no reason to follow such a strategy. In contrast, 1-minute charts allow for a better implementation of such strategies, as historical data show. The success of the strategy appears to be more pronounced in the EURUSD case, albeit also having its ups and downs. Consequently, in addition to specifying a correct timeframe, traders need to be very careful in drafting their strategy and adjust it quickly to how the market reacts. Remember that no strategy is full-proof and fast adjustment is something which can make or break a trade. Nektarios Michail, PhD Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Education
by HotForex
How To Calculate Pip Value, Risk & Trade Size TutorialHey Traders, in this idea we are going to break down step by step, how a professional trader calculates pip value, risk and trade size. The focus of this lesson is aimed towards helping you get an idea of how you can create your own risk management plan in order to remain consistently profitable over a long period of time. You can have the best strategy in the world and still lose consistently without a solid risk management plan. In fact, in my personal experience with teaching traders, I have found that many traders who do not succeed are actually using a profitable strategy! These traders would have made money if they followed their risk management rules but that tends to go out the window when we do not see how the numbers work out for ourselves (among many other reason). It is important that you use these calculations that I have broken down on these charts over and over again until it makes perfect sense to you and then apply them to your own trading. If you do nothing else at least make sure the numbers work for you! I hope this short tutorial helps you get started on creating your own risk management plan and please be sure to comment below with any questions you may have. If you like this tutorial please give this lesson a thumbs up and I will cover more on this topic In a future lesson. Thanks Traders, If you would like access to a spreadsheet that automatically calculates all of this for you, please request one using the link below and I will send you my personal spreadsheet for free. goo.gl Also if you have not done so please follow me at TradersNsights Facebook page as I plan to start posting daily market updates and predictions over there that may be helpful to you. www.facebook.com
Education
by Alec40
17
Trend Reversal Alerts Strategy in DepthThis idea based on one of the simplest trading strategies in the world Trend-Reversal-Alerts-Strategy that I shared recently. Now I want to spread few words about how you should make it perform better with help of buy and sell resistance and I will show you the exact methods. But first, if you still not sure how this strategy tester is actually work you should definitely read this: TradingView Blog: EN/new-features-improvements-strategy-backtesting RU/new-features-improvements-strategy-backtesting Also I want to recommend an article that I googled. It examine in depth and gives a perfomance summary on every single subject: tradingview-strategy-tester-performance-summary According to Buy/Sell Resistance. When new candle created with assigned Open value, Resistance = 0. In the second Close start moving it changes so called Resistance of that candle. It could be negative or positive. So by setting resistance you can tell this script to enter/close your trades only when Buy/Sell Resistance values are greater or equal than your settings values. * You should tweak it only after all strategy tester options are ready. Very important! I do it in a simple way : open settings -> Buy Resistance = 1 -> Sell Resistance = -1 -> then if nothing change -> Buy Resistance = 1.5 -> Sell Resistance = -1.5; otherwise -> Buy Resistance = 0.5 -> Sell Resistance = -0.5 and so on... * This is very important to do to eliminate in the future "resitance issues" - when you can't enter/close trades because of your resistance settings. That is all for now. Take care and bye bye!
SP:SPXEducation
by sequentialvision
Trading Support and Resistance.This is nothing new, I cannot claim this as my own, all the major traders trade this way. This is a strategy a lot of traders use. It is one of the most simple trading methods available. It is simple and effect, you dont have to risk everything to be successful either. You don't need any fancy indicators. I cannot express enough how important Stop-Losses are. This works extremely well in sideways movement. If the market is trending, then it is best to find your entry and follow it up with a stop to avoid missing out on gains. This image shows 6 executed trades of which 5 trades were successful. - No strategy is invincible. There are 5 Stages. 1 - We make a new low, or a new high. 2 - We establish the entry point by the bodies of the candles (The longer the wicks the more diligent you need to be with your Stop-Loss - The riskier the trade is) 3 - We attempt a move up that is rejected, this is important as we want a proper test of the new support/resistance. 4 - Place your Long/Short entry at the S/R line. - In the case of extended wicks, you lower your R:R you can aim for a lower/higher entry point to yield a better R:R 5 - Target previous highs. - It would be ideal to take 50% or more of your profits here at the first S/R level. - You can follow the rest with a trailing stop loss if you are unable to monitor the trade or set your targets further away R:R - Risk to reward ratio - The higher the number, the better the trade S:R - Support and Resistance.
BITMEX:BTCUSD.PEducation
by Seraphic
How you NOT use Fibonacci! Support&Resistance for beginners!Hey everyone, welcome to my second Video about fibonacci and how you should and should not use retracement- and extension levels. :-) There is way more to say about resistance and support-levels. Since I only got 10 mins. for a video I can just talk about small pieces and highly recommend you to check more about this topic. I just wanted to give you an example how the market works and how it respects resistance and support-levels. There are more Traders than those who safe profit to cause resistance or support-zones. Stop-Loss-Levels gets triggered, Take-profit, fundamentals, those who are flat and wait for signals and so on. If you wanna see more about that topic just use the comment section and tell me more about your wishes. :-) You can also PM me! Peace and good trades Irasor Trading2ez Wanna see more? Don`t forget to follow me. :-) Need education or more signals? PM me. :-)
COINBASE:BTCUSDEducation
by Trading2ez
15
EXAMPLE for creating a Strategy! How to make money with TA! #1Hey tradomaniacs, most of all beginners out there (I was at this point aswell), don`t know how to create a strategy and trading plan and are not able to make money WITH the market. At this point, I just wanna give you an example and tell you why it`s so important to have valid signals and a strategy you can trust in. Emotions - The Cash-shredder Emotions are the reason why 90% of all retrail-traders fail! We, as a human being, are visceral still living in the Stone Age controlled by FEAR & GREED. That`s why we need pre-conditions whose undertake these responsibillitys and determine our trading. CONDITIONS are part of your Strategy and you should treat them like your BOSS telling you when to trade! This picture does not includ important things like Stop-Loss, Take-Profit, Risk-and Moneymanagement and so on.. THIS IS one EASY example for a TREND-FOLLOW-StRATEGY, which is easy to use for beginners. Don`t start with crazy shit like Gartley, S/H/S and other Patterns whose have extra conditions and things to know that you can`t know as beginners. I will tell you more about this in another post it`s late here in germany! ;-P I just want this to be an inspiration for lost beginners. Peace and happy learning Irasor trading2ez PS: Have at least 4 of 6 conditions!
KRAKEN:XRPUSDEducation
by Trading2ez
10
Intermediate Trading Strategy - Part 1IMPORTANT NOTE: If you are looking for a shortcut then this is not for you! This is for individuals who are enthusiastic about putting in the time and effort but may lack the structure. I plan out my trades through in depth technical analysis, risk management and market research. I believe that consistency is the most important factor in regards to trading profitably. A traders success is determined more by the consistency of their approach than it is by the quantity or quality of indicators being used. Over the long run, a consistent process combined with a sound strategy will net a disciplined trader far greater returns than the market average. If you have any questions then feel free to leave a comment or send a private message. Click here for Sawcruhteez’ Trading Process Before Making an Entry Identify Trend Higher highs and higher lows = bull market Lower highs and lower lows = bear market Lower highs and higher lows = triangle continuation pattern Equal highs and equal lows = Consolidation/Range Tyler Jenks’ Consensio Price > Short term MA > Long term MA = Bull Market -I like to use the 50 & 128 day MA’s by default for crypto. For traditional markets I use the 200 MA. -For short term price movements (1 month or less) I like to use exponential moving averages. 12 & 26 EMA for crypto and for traditional markets the 9 & 21 EMA. Welles Wilder’s ADX If ADX > 25 then trending market If ADX < 20 then no trend is present If +DI > -DI then bull trend If -DI < +DI then bear trend In extreme circumstances I will bet against the trend. This will only happen when the risk:reward is too favorable to pass up. Identify Time Horizon Investment Is this a 10+ year investment? If so then I will dollar cost average my way in and not even look at the charts or listen to the news. Investments are not meant to be babysat, they are meant to develop over time. Bet it then forget it! Position Trade Buy/sell breakouts and attempt to hold on for the duration of the trend. This is done through technical analysis and trailing stop losses. If I am in a position trade I will tend to it daily by looking at charts and managing stop losses. It is not required to ‘baby-sit’ the position by watching it all day and this approach is actively discouraged. Position traders do not concern themselves with intraday movements. Managing the position too closely will often cause traders to make mistakes they wouldn’t have otherwise such as: taking profit too early or adjusting stop losses in the heat of the moment. This is my prefered method of trading for a number of reasons. Primarily it is because I like to live a balanced life. I like to be able to set my stop loss and forget about it while I am out playing golf, skiing or at the gym. Time horizon for a position trade is often a couple months or even a year+ Swing Trade “Markets do not go straight up, nor do they go straight down.” There is an ebb and a flow to the price movements. Swing traders try to capitalize on the daily - weekly price movements. Is price at resistance? Sell. Is price at support? Buy. Swing traders have well defined price targets. They can trade within ranges or in trending markets but they generally do not hold through significant resistance in order to speculate on the price movement. If it does breakthrough resistance then they can re enter without as much risk. Day trade Mostly scalpers and high frequency robots. In traditional markets the price generally isn’t very volatile on an intra-day basis so most traders will use high leverage. This will allow them to 10X, 50X or even 100X a 1% price movement in the underlying asset. In crypto the market is volatile enough for day traders to make a very handsome profit without using leverage. This approach is still the extremely risky.
Education
by Sawcruhteez
1
How my strategy could have saved people on a huge short squeezeHey everyone, YoungShkreli here Every now and again, I reflect on my trades and see if I can pull something from my past that will help you all in the future. So gather around the campfire, have some smores, papa Shkreli is going to tell you all a story. The date is April 11th 2018. Tomorrow, there will be one of the biggest, if not the biggest, short squeezes in Bitcoin history. Everyone is bearish and just the day before, so was I. I thought that was the move that was going to take us down to $5,000 (I've been waiting to hit this number since December 2017). My feeling was that bitcoin was going to do it, it was going to hit $5,000 and I was going to increase my bitcoin stack by a ton. However, the ashi closed green after a long bear move and a low RSI reading, so instead of shorting like the rest, I went and bought bitcoin (unfortunately, I wasn't wise enough to go 1000000x long). Let's recap, my feelings were telling me to short, but my strategy was telling me to long. Which did I listen to? My STRATEGY. Guys, this is not an article about how you have to be contrarian (although you should be), this is an article about sticking to the strategy that you know works. I can't stress this enough. A good trader is not someone who can guess where the market is going all the time (no one can, no one is a wizard). A good trader is one who has developed a winning strategy, controls risk, and knows when he is wrong. You can be wrong MOST OF THE TIME and still make a TON of money. Before I adopted my most recent strategy (which is levels above what I have used before and seen here or anywhere), I had the other two things and that was good enough for me. I remember during one bad run of luck, I got 8 TRADES IN A ROW incorrectly. That said, on each one of them, I controlled the loss so that they were all small. When I got to the ninth trade, I was right and I was right big. I was right so big that it cancelled out the previous losing trades by a cool 8%. If you are trading a big account, 8% is a big deal. SUMMARY: Trading is not about knowing where the market is going, you can't possibly know that. Trading is about being emotionless and being willing to be wrong, controlling risk, and hopefully always finding ways to make your strategy better. If you liked this post, please like my work and follow me. It will help both of us: I can only really help people in a big way when I'm on the top trader list - I will sell software, strategies, write more etc. as well as continue to provide free material. Notice that in addition to selling things for money, I will always provide a TON of free material until I die, why? Because I am only where I am today as the result of other people teaching me things for free. If it weren't for free resources online about bitcoin and trading, I would not have done that well for myself. Trading has changed my entire life because trading bitcoin got me into learning fundamental analysis for stocks, which got me reading finance books, which got me reading any type of book, which taught me skills, which got me into entrepreneurship etc. I don't care about money, I care about being successful and helping people. That is what life is about: taking care of yourself and those who support you. Stay humble guys, we all stand on the shoulders of giants :') -YoungShkreli P.S. I already know what my next educational post is going to be about. I love trading, you guys. hint: it's going to be about code I wrote and Ray Dalio
BITFINEX:BTCUSDEducation
by CantorTechnologies
2
My 10 Rules before Taking a Trade.1 : Dessiner les Niveaux clés et la Tendance. (a) Trend and Supports/Resistances Majeures. (12-16x timeframe) (b) Trend et Support/Resistance on shorter term(6 or 8 time short). Draw the most recurrent Fibonaccis retracements or/and extensions. (c) Check Action Price on your trading timeframe. Draw short-term fibos. 2: Find a Signal Only valid on KEY LEVEL. Ideally respect the trend, with exception of reversal trades. No signal. STAY FIAT. Ignore Signals if : -Low volume. -Complex retracement. -Sloppy action price. 3 : Find Confluences. Is this scenario direction or targets the same if i use different projections? Different Bias? Does market profile validate my fibo support? Confluences help classify your potential setups by quality and help reduce exposure and overtrading. 4 : Plan the trade. We have the entries, the targets. Congrats that was the easy part, now you need to find invalidations, partial profit targets and when to rise your stops. For advanced trader, time to plan your time related stoploss, potential re-entries and how you plan to ladder your entries. Reminder : The closer your stop is, the best is your ratio and so are your earnings, in the long game, ladder entries will boost your profits. 5 : Calculate your REALISTIC Risk/Reward. No volume on the breakout of your triangle? no reaction on your fibo level? Trump is on a twitter fury and excite the dumb money.Most of the trades are not gonna go like you planned, you're gonna need to get out or reduce your exposure for many reasons. Being optimistic is good day to day life, when trading it's the opposite. Be Honest and Pessimist. 6 : Define Sizings and Maximal Exposures. Up to you, i personnally use 1% for my best setups, when i'm not so confident or trading an aggressive setup probably more like 0.3%. I usually ladder my entries with 4-10 positions. Still working on it. Reminder : A drawdown >25% brings a risk of ruin between 0.5 to 1%. My 10 years experience in risk/reward management 2 cents. This one percent HAPPENS. A human common bias is considering small percentage as irrelevant. They are very relevant, get other this bias. In my opinion : <1% risk per trade is MANDATORY if your capital is consequently above your cash flow. 1-3% if you cash flow afford you to rebuild your capital quickly. >3% if you are masochist. 7 : Mental check-up Am i calm? Do i want to trade this setup logically or am i pushed by Greed or desire of Revenge? What are my recent results? Am i emotionally involved? What are my recent results? Winning Tilt : Care of Overtrading, loose Stop losses, passing by mandatory partial profit. Losing Tilt : Care of Stops too tight, freezing and undertrading. 8 : Accept uncertainty and pending loss. A drawdown is normal even to very successful traders, for exemple with 50% success rate, you are gonna frequently have a 16 consecutive losing streak. Why this trade would be exceptionnal? Don't take this trade if you are not ready to lose 16 times your stop without blinking, without complaining. If you find yourself doing that, then it's a sign you are too exposed. you DON'T HAVE to risk 1% per trade, especially if you haven't proved you are a winning trader with a long history of profitable trades. Accept this trade is almost irrelevant and part a of a bigger picture. A lifetime of profitable trades that are going to increase your capital. No more no less. 9 Backtest before exposing yourself. Is this trade part of my bigger plan? Am i in my confort zone? Am i factually profitable with that sort of trades? If yes, Green Light. If no, don't panic, this work is not worthless. It is very valuable to open ourselves at other technical analysis, other instruments. But no so recommended to burn some bills on it. Time to Paper test this setup, or trade it on a demo account. Make stats on it, is it better than your actual strategy? Yes, you just made yourself richer? No?Smarter then..
COINBASE:BTCUSDEducation
by JJFF21
1
How to trade with ESMA new regulations on leverage ?Hi everyone, Some of you may or may not know that big changes will take place on august 1st 2018 on Forex and CFDs market especially for retail clients. ESMA for European Securities and Markets Authority decided to ban binary option and apply a drastic decrease on leverage on all financial instruments including forex, CFDs and crypto. All UE regulated brokers are affected by these changes. Even non-UE brokers (I mean serious ones) are applying these changes. All clients from UE or not are affected by these changes. This a worldwide earthquake on trading planet. New rules, new attitude... how to deal with these changes ? First find below the new leverage : Major FX: 30:1 (USD, JPY, CAD, GBP, CHF) Minor FX: 20:1 (ALL OTHERS including AUD, NZD) CFDs: 20:1 Stocks: 5:1 Crypto: 2:1 Before, a trader could start trading with $100 with leverage up to 400, a micro lot (0.01) required $4 margin average. Starting august 1st a trader with a $100 account will need a required margin of $30 ON EURUSD for a micro lot (0.01). EURUSD new magins on august 1st: 0.01 lot: $30 0.1 lot: $300 1 lot: $3000 Of course this post is not dedicated to criticize this new law but to provide ideas to deal with it and continue making money. Normally I recommend using 0.01 lot per trade with a $1000 account but this rule can be adapted if we reduce drastically the number of opened positions simultaneously. For example, if you take only 1 trade a week in swing looking for 80 to 150 pips, you can obviously increase your lot size from 0.01 to 0.05 or even 0.1 for experimented traders. Selecting carefully trading opportunities The first consequence of the low leverage is the fact that you cannot open several trades simultaneously. You really need (and you won't have choice anyway) to be selective on trading ideas. Choose only opportunities with the best configurations and in which you have a really good confidence. Strategy 1: If you have a $1000 account, you can decide to keep up to 4 trades opened at the same time with a reasonable stop loss. If you risk 2% of your capital per trade , you could use 0.05 lot at $150 margin with a stop loss of 40 pips ($20). If you apply a risk/reward ratio of 2 or more then you can expect 80 pips ($40) on each trade. With this strategy you must lose 20 trades in a row ($700 loss at 40 pips stop loss) before not being able anymore to place 4 trades simultaneously at 0.05 order. You need to win 35% of your trade to be flat because of the risk/reward ration of 2 minimum. (See the attached post about risk reward ratio) Strategy 2: If you have a $1000 account, you can decide to keep only one trade opened at the same time with a reasonable stop loss and with a bigger leverage. Assuming that you risk 5% of your capital per trade , you could use 0.1 lot at $300 margin with a stop loss of 50 pips ($50). If you apply a risk/reward ratio of 2 or more then you can expect 100 pips ($100) on each trade. With this strategy you must lose 14 trades in a row ($700 loss at 50 pips stop loss) before not being able anymore to place a 0.1 order. You need to win 35% of you trade to be flat because of the risk/reward ration of 2 minimum. (See the attached post about risk reward ratio) Strategy 3: For scalpers, if you have a $1000 account, you can decide to keep only one trade opened at the same time with a reasonable stop loss and with a bigger leverage. Assuming that you risk 2.5% of your capital per trade, you could use 0.1 lot at $600 margin with a stop loss of 10 pips ($20). If you apply a risk#reward ratio of 0.5 then you can expect 5 pips profit ($100) on each trade. With this strategy you must lose 20 trades in a row ($400 loss at 10 pips stop loss) before not being able anymore to place a 0.2 lot size trades simultaneously at 0.2 lot size. Obviously you really need to get a high winning rate to stay alive. Hope you enjoyed this post. Happy trading!
Education
by Traderscope
2
How I Trade BitcoinHi Traders, Very rarely do i educate on public platforms, however i feel that this information will be hugely valuable to the wider trading community and help those who struggle to identify a trading zone. Building a tick list of requirements prior to a trade not only provides you a higher probability of long term success, but also reduces impulsive and emotional behaviour. In my opinion there is a huge misconception that 1 indicator is enough to become a consistently profitable trader, i feel building an area where price is likely to reverse based on multiple confluence factors will give you the 'edge' over the market that is required. Be sure to swipe left to view all 8 trading opportunities. Thank you for your continued support. DISCLAIMER: I am only providing my own trading information and basic techniques for your benefit and insight, you should apply your own due diligence and not take this information as a trade signal / strategy.
COINBASE:BTCUSDEducation
by UnknownUnicorn180388
85
trend indicator for Binary Option 80% of profitable trades This trend indicator for binary options shows excellent results both on currency pairs and crypto currencies . You can work on most currency pairs and on different T. F, but the settings are more adapted For M 5, M15 The indicator shows the price reversal in the form of red and green dots when the candle is closed . buy signal. a green/dot should appear on the indicator after the candle closes . entering a trade at the opening of a new candle the time of the trade is one candle . sell signal. a red/dot should appear on the indicator after the candle closes . entering a trade at the opening of a new candle the time of the trade is one candle . If you strictly follow the recommendations and work within this strategy, the percentage of positive transactions is about 80 % .That allows you not to use "martingale" and stay in the black with minimal risk. If you are interested in this indicator for access write to me in private messages ! ( comments rarely looking better to write in private messages )
Education
by Andreev_Mikhail
10
Trading system for Binary Options 70-80% positive trades Hi Friends ! I decided to show how my strategy works . Quite well shows the turning point of the price . This is a strategy for Binary Options . Perfect for those who are not much in a hurry and loves to trade on scalping (Strategy as simple and reliable) The strategy consists of two main scripts and one auxiliary that allows you to use the free version of T. V You can work on most currency pairs and on different T. f, but the settings are more adapted For t. f M5 Support and resistance levels are drawn and updated automatically, which is very convenient for beginners . If you strictly follow the recommendations and work within this strategy, the percentage of positive transactions is about 80 % .That allows you not to use "martingale" and stay in the black with minimal risk. But if you still like the martingale it is usually enough 3 rarely 4 steps. ( I advise you to use martingale only after two months of practice on this strategy ) Below are screenshots with more detailed recommendations . How to choose the right entry point. How to act with a false signal As an example screenshots with statistics for 30.05.18 on EUR-USD Timeframe 5M. If you are interested in this strategy to gain access to all three of the necessary script, please contact me in private messages ! ( comments rarely looking better to write in private messages )
Education
by Andreev_Mikhail
1
USDTRY - Be wary of Intervention ex-post Rapid MovesTraders layering into TRY potentially got burnt last week as the Turkish Central Bank intervened to halt the local currency's worrying devaluation by raising interest rates by a whopping 3% Whilst i tend to let the majority of fundamental data pass me by , it often pays to atleast maintain a health awareness of key macro factors that might have a direct impact on any currency pairs you are trading or tracking (this is different to following any random commentator's subjective opinion) While I do not like setting upside targets , it can pay to trail stops at healthy profit levels during large abnormal moves so as not to give back profits (we saw this in crypto in Dec 17) adn if we miss the big move initially wait for natural pullbacks / consolidations rather than chase an entry. There will ALWAYS be a pullback or another instruments that will offer the next big move. Worst thing to do is chase an entry through FOMO , get burnt and then be paralysed the next time a big opportunity presents itself. Stay rational, stay calm and nimble
Education
by TJP_Trader